Sovereign Risk, page-2

We have an upcoming state election in March that will determine whether we get a labor or liberal government. Since the labor party has imposed increased royalties in QLD in the last budget, one would think that if they are elected in NSW they will be more likely to raise the royalties there than the liberals, who opted not to raise royalties in NSW in the last budget. It is also evident that QLD is much more dependent on coal income than NSW, whos % of GDP from coal is much less than QLD. It is also more likely that mining communities in NSW will look at the labor party in NSW with contempt following what they did in QLD and give them fewer votes as a result.